Russia’s Central Bank wants to cap mortgage terms amid fears about growing time horizons

In a recent consumer lending report, Russia’s Central Bank proposed capping the provision of mortgage loans for periods longer than 30 years. Officials noted that Russian banks have extended loan terms to reduce average monthly mortgage payments. Over the past year, the share of mortgage loans in Russia with terms exceeding 30 years has increased from 10 to 20 percent. However, these longer time horizons increase the risk of borrowers facing unforeseen difficulties in repaying their debts. 

“In the near future,” State Duma lawmakers are expected to consider the second reading of legislation authorizing the Central Bank to cap mortgage terms. The law could enter force as soon as April 1, 2025.